Brokerage Firms Issue 'BUY' Rating on Hindustan Aeronautics Limited (HAL), Forecasting Up to 24% Return; Strong Order Book and Attractive Valuation to Benefit Investors.
Defence PSU Stock: Thursday (March 27th) witnessed a positive trend in the Indian stock market. Major heavyweight stocks such as HDFC Bank, Bajaj Finance, SBI, and Infosys saw increased buying, leading to market strength. This follows a decline in Nifty50 and Sensex on Wednesday due to profit-booking. However, the market has shown signs of recovery after the recent correction. Nifty and Sensex, after correcting by up to 16% from their highest levels, have now shown a surge of over 5%.
Brokerage Firms' Opinion on HAL
Hindustan Aeronautics Limited (HAL) is a major player in the Indian defense sector. Recently, several brokerage firms have expressed a positive outlook on this stock and recommended it as a long-term buy. Antique Broking, ICICI Securities, and Mirae Asset Sharekhan have adopted a bullish stance on HAL.
Brokerage Firms' Target Prices and Estimates
Antique Broking: The brokerage has maintained its 'BUY' rating on HAL with a target price of ₹4,887, suggesting an upside potential of up to 18% in the stock.
ICICI Securities: This brokerage upgraded its rating from 'ADD' to 'BUY' and raised the target price from ₹4,065 to ₹5,000. This implies a potential increase of up to 21% in the stock.
Mirae Asset Sharekhan: This brokerage has given a target price of ₹5,100 for HAL, indicating a potential rise of up to 24% in the stock.
HAL's Strong Fundamentals
HAL's order book and future prospects make it an attractive investment option.
GE Aerospace has delivered the first F404-IN20 engine to HAL for the Tejas Light Combat Aircraft (Tejas LCA Mk 1A).
Antique Broking believes that HAL's b order pipeline strengthens the company's long-term business.
According to ICICI Securities, this delivery can address investor concerns regarding HAL's execution capabilities.
According to Sharekhan, HAL's order book stands at ₹1.33 lakh crore, and the potential order pipeline could reach ₹1.6 lakh crore, ensuring b future growth for the company.
HAL's Share Performance
HAL's stock is trading 27% below its 52-week high of ₹5,675. However, it has seen a 4.11% increase in the last month.
In three months, the stock has fallen by 1.29%.
A decline of 9.22% has been recorded in six months.
In one year, the stock has risen by more than 6%.
Market Cap: ₹2,79,016 crore (on BSE).
